Sara holds 1,000 shares of stock in Starr, Inc., which she purchased based upon financial statements that Travis had prepared. She now realizes that the statements were false and wants to sue Travis for common law fraud. What is Travis's best defense?

Question

Quizplus · Accepted Answer

If the false statements were immaterial, they would not have influenced Sara's decision to purchase the shares, which is a key element in proving fraud.

Sara Holds 1,000 Shares of Stock in Starr, Inc